UK/France

[stek]

Makes no different to the personal situation. The company situation is where it perhaps gets a little murky; check out Apple and their ability not to be tax resident anywhere.

I'm in Denmark and taxed here, from day one. As far as I know in EU only Sweden gives you the 183 days as a one man company

I did a lot of research on this!!!

[Jessica@WhiteFieldTax]

I would want to be looking at the Offshore Intermediaries rules in some detail. The French workers personal company could be such an intermediary, and if the uk consultancy was deemed an agency then problems could arise.

Needs picking through in a factual basis, and appropriate indemnities in place.

[NotAllThere]

AIUI, if the Frenchman takes all the money without paying tax, the consultancy will be liable.

[Fred Bloggs]

He will be UK resident for tax which he must pay. He will then be credited for his UK tax paid when his income is assessed for tax in France.

[vlc]

Tax is due where the work is done. Simple as.

Sure, but that does not mean the consultancy fee can't be paid to the France-based company. After running costs etc., that company would presumably pay him a salary. He would then be potentially liable to pay personal income tax in the on that salary, in the UK if the work is long enough, otherwise in France. But remember that the contract is to pay the company not the person (who is actually an employee of the company).

[stek]

Sure, but that does not mean the consultancy fee can't be paid to the France-based company. After running costs etc., that company would presumably pay him a salary. He would then be potentially liable to pay personal income tax in the on that salary, in the UK if the work is long enough, otherwise in France. But remember that the contract is to pay the company not the person (who is actually an employee of the company).

Consultancy (IBM, Accenture etc) is not the same as contracting (one man company). Big difference between a huge BIGCO sending one person abroad out of thousands of employees as against ONEMANCO sending himself and effectively the whole shooting match abroad.

[vlc]

Consultancy (IBM, Accenture etc) is not the same as contracting (one man company). Big difference between a huge BIGCO sending one person abroad out of thousands of employees as against ONEMANCO sending himself and effectively the whole shooting match abroad.

At what point exactly does one change into the other; legally and in terms of taxation?

[SueEllen]

At what point exactly does one change into the other; legally and in terms of taxation?

When you have sufficient bodies so the director(s) can be all be working in one country and the employee is working in another.

However some European countries insist that employees sent to work in their country pay local tax on their earnings in that role from day 1.

Free movement of people doesn't mean you don't abide by local tax laws.

[kolata]

I know people working in IT for a UK company (branch, but separate legal entity) based in EU and them being seconded here for years to do work in the UK office.

They are on the EU country's salary + their expenses in the UK are paid 100% (accommodation and travel) + get £30 per day allowance on which they don't pay any tax anywhere.

The only tax they pay is in EU country, not the UK. So if it is doable for 5-6-7 people, it will work for one man show.

[SueEllen]

I know people working in IT for a UK company (branch, but separate legal entity) based in EU and them being seconded here for years to do work in the UK office.

They are on the EU country's salary + their expenses in the UK are paid 100% (accommodation and travel) + get £30 per day allowance on which they don't pay any tax anywhere.

The only tax they pay is in EU country, not the UK. So if it is doable for 5-6-7 people, it will work for one man show.

Are you deliberately being thick?

Each country even in the EU has their own tax regulations. They therefore have different laws on what a company consists of so while it may be fine to do that in the UK it isn't in Nordic countries.